Hi All, I am hoping someone can give me some advice and point me in the right direction. I'll try to summarize as much as possible.
In 2021 I purchased crypto currency. I've used 2 different platforms: Crypto.com and Uphold. For Uphold I purchased XRP and have mainly held the investment all year, but I did request some withdrawals back to my bank account throughout the year. They provided a 1099 form, and all looks pretty straightforward there, as far as how to report the tax due.
With crypto.com, it is a bit more complicated. They provided me a tax report showing all yearly transactions reported. I am to download and use this to calculate the tax due on my own. The main issue here is that I had big problems occur back in April 2021.
I attempted to sell ETH and transfer the proceeds back to my bank account. In error, I instead sent it to this other tockenpocket wallet address, that I later discovered I did not have the credentials saved or written down for. The funds were never able to be retrieved from this wallet. As far as I know, they are still there, but I cannot access them, and they are forever lost to me unless I can unlock it somehow.
I further made things worse by trying to ask for online help when this occurred and I was panicking, only to be scammed from someone posing online as a customer service rep for "tokenpocket" into purchasing more ETH. When I transferred the new purchase directly to the wallet they instructed me to, of course it was lost as well. I did not receive any goods or services for what looks to be a "sale" or something I received in exchange for the coin. I got nothing, except losing more of my investments, and feeling like a fool.
This leads me to my ultimate questions.
1. I've already filed by 2021 taxes before receiving these statements from Uphold and Crypto.com in March.
Do I have to amend my taxes for 2021 (and request an extension at this point) to report this; or can I wait until next year and resolve it all then in 2022?
2. Based on my description of the stupid error I made trying to Sell off ETH, and the additional funds that were stolen from me shortly after due to fraud, (I did not call the police or make a report. The person was overseas that scammed me and I thought that it seemed hopeless to retrieve at the time so I gave up.), will I be responsible for paying tax for these sales of crypto to these 2 unknown wallet addresses, even if I never ultimately received the funds or any equal service?
I appreciate your time to read all this. If you or someone you know may be able to help me, please let me know. I'm starting to freak out a bit about this, as the tax could be pretty sizable if I have to claim as income. I hope there is some way to avoid this and claim the losses.
